The government is considering introducing a new tax regime that would allow taxes to be deferred indefinitely when gains from the sale of a non-core business are used to fund acquisitions of growth businesses. Several people familiar with the matter described the policy.
The government is considering a new tax regime that could allow taxes on gains from the sale of non-core businesses to be deferred indefinitely, on the condition that the gains are used to fund acquisitions of growth businesses. According to sources, the specific framework has yet to be decided and remains under consideration.
The policy is intended to promote corporate business restructuring. Several sources said that directing the gains toward growth investment could accelerate companies’ restructuring.